KPMG’s global survey on Corporate Responsibility (CR) reporting is one the most comprehensive reports on global trends in CR Reporting. Download the KPMG (International) Survey of Corporate Responsibility Reporting 2015 here. Find out more about CR Reporting in South Africa.
The KPMG (International) Survey of CR Reporting 2015 found that globally ‘Corporate Responsibility (CR) Reporting is standard practice and growth has continued between 2013 and 2015, although the rate of growth has slowed down’.
CR Reporting in South Africa is standard business practice with a 99% CR and Integrated reporting rate (in the South African N100 companies), even higher than the G250 companies. Results from the KPMG International survey highlighted South Africa as being placed fourth behind India, Indonesia and Malaysia respectively for having the highest CR growth rate globally.
The awareness and support of the International Integrated Reporting framework by major South African listed companies is high. In South Africa all JSE listed companies are required, on an apply or explain basis, to produce an Annual Integrated Report as part of the recommended principles and practices outlined in the King III Code of Corporate Governance since as early as February 2011. As a result, South Africa has led the way in integrated reporting. The King IV Governance Code consultation draft will be released soon, we anticipate that its focus on integrated reporting will remain. King IV is anticipated to become effective from mid-2017, after a robust consultation process.
Based on our experience companies are beginning to see that integrated reporting can assist them to unlock value, through identifying and strategically responding to the most material impacts on their business that threaten or enhance value creation into the long term. Integrated reporting is purpose-built reporting, it enables businesses to make informed timely decisions and ensures that underlying processes are fit for purpose.
With regards to the reporting frameworks used in CR reporting, the 2015 research found that Global Reporting Initiative (GRI) remained the most commonly used reporting framework, in both the G250 companies as well as the South African N100 companies.
Businesses, across all sectors, are becoming more and more aware of the global, sustained and macro-economic forces that impact business, economies and societies; such as climate change, water scarcity and population growth. By staying informed of these megaforces and their implications on themselves and their suppliers and customers, companies are able to better assess the risks and opportunities presented.
Of the South African N100 company reports reviewed 80% identified some global megaforces that impact their business. Of these, climate change, energy and fuel and water scarcity are the most commonly listed.
We noted that in the South African N100 companies the commodities, manufacturing, financial services and retail sectors included discussions of the highest number of the megaforces in their reporting. Sustainable businesses need to stay informed of the megaforces and consider the short, medium and long term possible impacts on the business. Practically this will include: